Silver prices began the week under significant pressure, with XAG/USD falling nearly 4% on Monday to trade at $57.50, remaining below the $60.00 mark [1]. This sharp decline is attributed to escalating tensions in the Middle East and hawkish remarks from Federal Reserve Governor Christopher Waller, which have strengthened the US Dollar. The US Dollar Index (DXY) rose by over 0.28%, further weighing on silver prices [1].
From a technical perspective, the downtrend in silver appears set to continue, as the market structure of lower highs and lower lows remains intact. XAG/USD is approaching the July 8 daily low of $57.22, and a breach of this level could open the path to test support at $54.39, which was the high on November 13, 2025, and has since turned into a support level. If weakness persists, the next significant level to watch is $50.00 [1].
On the upside, a bullish reversal would require XAG/USD to break above a key resistance trendline around $62.25-$62.50 and then surpass the July 6 high at $63.28. Clearing these levels could pave the way for a move toward $65.00 and potentially the $70.00 region [1].
The article also notes that silver prices are influenced by a range of factors, including geopolitical instability, interest rates, the strength of the US Dollar, investment demand, mining supply, and industrial demand, particularly from the electronics and solar energy sectors. However, the current market focus remains on the strong US Dollar and geopolitical tensions [1].
CONCLUSION
Silver experienced a sharp decline of nearly 4% due to Middle East tensions and hawkish Fed commentary, with technical indicators suggesting further downside risk. The market is closely watching key support levels, while a stronger US Dollar continues to pressure silver prices.